18 April 2021
sir in sole proprietorship, we say interest on capital. but as business and businessmen are same as per law, so why to allow ioc, salary, I'd, and other as these get deduced form profits and get added to capital. in a way profit is added to capital. sow hy to reduce profit from these expenses and then add it to capital in way if it is not deduced it will go to profits which will ultimately increase profit.
18 April 2021
In partnership firm is taxed separately at 30% on profit earned. Salary and interest paid to partners taxed in the hands of partners at slab rate. in the case of prop only single taxation at slab rates.
18 April 2021
In partnership firm and partners are taxed. salary and interest deducted from firm and taxed at slab rate in the hands of partners. Prop only individual is taxed at slab rates. ( If salary and int paid same will be added and taxed on prop)
18 April 2021
But sir as partnership is not a separate legal entity the provider of finance I.e. partner is as same as user if finance I.e. firm.. so it should be allowed and same appliees to salary as both employer and employee is same
19 April 2021
Yes sir I understand this that as per income tax you are talking about but see as per law they are not separate legal entity so why to give them the IOC salary Iod and other
19 April 2021
Partners work full time for the firm so they have to take salary for the personal expenses. One partner put only money and take interest and other partner will be working partner take salary. Capital introduced by the partners may be different, so they take interest based on amount invested. one of the partner may be non working partner for him salary will not be paid.
02 May 2021
SO SIR IT MEANS THAT THESE ARE APPROPRIATIONS AS THEY GET TO COMPENSATEW OR THIER WORK AND TIME..SO IN SHORT WE CAN SAY THATY IT IS JUST ANOTHER NAME GIVEN TO TAKE PROFIT FROM FIRM IN THE FORM OF IOC AND SALARY.. BUT IN CASE OF LOAN GIVEN BY PARTNER TO PARTNERSHIP FIRM, SINCE PARTNERSHIP FIRM IS NOT A SEPRATE LEGAL ENTITY, SO IN SENSE PARTNER IS GIVING LOAN TO HIMSLEF AS PARTNERSHIP FIRM IS NOTHING BUT PARNTERS.. SO HOW IS THIS POSSIBLE???
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